Pennsylvania Wage Garnishment Checklist
Understanding Pennsylvania Wage Garnishment
Pennsylvania wage garnishment for state tax debt is an administrative collection action the Pennsylvania Department of Revenue takes when a taxpayer owes unpaid state taxes and has not responded to previous collection notices. The department can order your employer to withhold a portion of your paycheck and send it directly to the state to satisfy the tax obligation.
Under Act 46 of 2003, the Department of Revenue is permitted to issue administrative wage garnishment orders directly to employers without the need for a court order. This administrative authority means the state does not need judicial approval to begin garnishing your wages for delinquent state taxes.
Why the Department of Revenue Issues Wage
Garnishment Orders
The state issues a wage garnishment order when a taxpayer has an unpaid tax liability and has not responded to previous collection notices or payment requests. Before wage garnishment begins, the department follows a specific collection sequence that includes multiple opportunities for taxpayers to resolve their debts.
After a tax liability is established through assessment, the taxpayer receives an assessment notice and has 90 days to contest it by filing an appeal with the Board of Appeals. Once appeal rights expire, the state sends collection or dunning notices and attempts telephone contact through the Delinquent Tax Call Center. Taxpayers are given approximately 90 days to pay in full or establish a deferred payment plan before the department proceeds with wage garnishment.
The Notice of Intent to Garnish
Before the Department of Revenue sends a garnishment order to your employer, you will receive a Notice of Intent to Garnish. This notice gives you 30 days from the date issued to take action and avoid wage garnishment entirely.
During this 30-day period, you can pay your debt in full, arrange a deferred payment plan, or contact the Department of Revenue to resolve the tax liability. Once the 30-day period expires without resolution, the department will issue a garnishment order to your employer.
You will then receive a separate Notice of Wage Garnishment informing you that the garnishment order has already been sent to your employer. This second notice confirms that wage withholding has begun and that payment plan options are no longer available.
How Much Can Be Garnished
Under Pennsylvania law, the Department of Revenue can garnish up to 10 percent of your gross wages for each pay period. The statute does not permit garnishment beyond this limit for state tax collection purposes.
Your employer must withhold this amount and remit it to the Department of Revenue within 60 days after receiving the garnishment order. To meet additional bookkeeping expenses, the employer is permitted to deduct up to 2 percent of the amount collected from you. The garnishment continues until the tax debt is paid in full or the Department of Revenue issues a termination notice.
What Happens After a Garnishment Order Is Issued
Once the Department of Revenue issues a garnishment order, payment plans are no longer available as a resolution option. The garnishment will remain in effect until the liability is satisfied completely or you file for bankruptcy protection.
You may make additional payments beyond the garnishment amount to pay off the debt faster and end the withholding sooner. Your employer is legally required to comply with the garnishment order and must begin withholding within the timeframe specified by the state.
Steps to Take After Receiving a Notice
If you receive a Notice of Intent to Garnish
- Immediate review of the notice is necessary to identify the tax year, amount owed, and
issuance date.
- Contact with the Pennsylvania Department of Revenue must be made within 30 days to
discuss resolution options before the garnishment order is sent.
- Accurate disclosure of financial information, including income and monthly expenses, is
required during this process.
- An inquiry into deferred payment plan options may prevent wage garnishment from
occurring.
If you receive a Notice of Wage Garnishment
- Receipt of this notice confirms that the garnishment order has already been sent to the
employer and that wage withholding will begin.
- Each paycheck should be reviewed to verify that withholding is limited to 10 percent of
gross wages.
- Errors or excessive withholding should be reported to the Department of Revenue
immediately.
- Periodic status updates can be requested to monitor the remaining balance of the tax
debt.
Keep copies of all correspondence and document the names and contact information of state representatives you speak with during this process. Maintain records of all garnishment withholdings throughout the payment period for your protection.
Employment Protections
Federal law prohibits employers from terminating an employee solely because their wages are being garnished for a single debt. The Consumer Credit Protection Act provides this protection to workers whose wages are subject to garnishment for any reason, including state tax debt.
Common Mistakes to Avoid
Ignoring the Notice of Intent to Garnish eliminates your only opportunity to avoid wage garnishment by arranging a payment plan or resolving the debt before the garnishment order is issued. Waiting to make contact reduces your options and makes garnishment more likely.
Assuming the garnishment will stop on its own is incorrect because the garnishment remains active until the debt is paid in full or the Department of Revenue releases it. Providing incomplete financial information when requesting payment plans prevents the state from determining appropriate payment terms that match your actual financial situation.
Frequently Asked Questions
How much of my paycheck can the state take?
Pennsylvania law limits wage garnishment to 10 percent of your gross wages for each pay period when collecting delinquent state taxes.
Can I be fired for having a wage garnishment?
Federal law prohibits employers from terminating an employee solely because of a wage garnishment for a single debt. Your job is protected from termination based on this reason alone.
Can the garnishment be stopped?
The garnishment may be released if you pay the debt in full or file for bankruptcy protection.
Payment plans are not available after the garnishment order is issued.
Can I set up a payment plan after the garnishment starts?
Once a garnishment order is issued, payment plans are no longer available as a resolution option according to Pennsylvania Department of Revenue policy. Payment arrangements must be made during the 30-day period after receiving the Notice of Intent to Garnish.
How long will the garnishment last?
The garnishment remains in effect until the tax debt is paid in full or released by the Department of Revenue. The duration depends on your income and the total amount owed.
Facing State Enforcement or Payroll Tax Issues?
If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.
We help with
- State enforcement actions and notices
- Payroll tax debt review and resolution
- Penalty and interest reduction options
- Payment plans and compliance solutions
- Representation before state tax agencies
20+ years experience • Same-day reviews available
